16th May 2018 08:41
LONDON (Alliance News) - Cineworld Group PLC said Wednesday its revenue for the period from January 1 to May 13 was higher on the year before as it "remains on track" to meet expectations.
The company's revenue increased 10% during the period, with a 6.7% revenue increase at constant currency. The revenue increase is due to the 1.1% admission growth on the back of the success of 'Black Panther' and 'Avengers: Infinity War in the US'.
According to Cineworld, the "strength" of US admissions over the year before has "driven growth" in each of the company's revenue streams.
Total box office sales increased 9.6% at actual currency - with the US performing best with a 9.8% jump. Retail revenue was up 9.9% at actual currency - with central eastern Europe and Israel the best performer with a 14% increase.
During the period, the FTSE 250-listed cinema operator agreed "significant" new agreements with IMAX and 4DX. The company has plans to install 55 new IMAX laser projectors across its full estate and 80 4DX screens in the US.
Cineworld also completed the first stage of the refurbishment of its Leicester Square cinema with the installation of a 4DX screen.
Following its USD3.4 billion reverse takeover of US-based Regal Entertainment Group in February, Cineworld said the integration plans are "progressing well". The transaction benefits are expected to be in line with expectations.
Cineworld announced it will change its presentational currency to dollars from the pound. This follows a significant majority of revenue, costs and cash flow of the cinema chain now being made in the US in dollars.
The change is expected to reduce the impact of currency movements in reported results and provide a more "meaningful understanding" of Cineworld's financial performance.
The pair have 9,542 screens in total after the completion, spread across the US and Europe, making it the second largest cinema operator in the world based on the amount of screens.
Shares in Cineworld were trading down 0.2% Wednesday morning at 271.60 pence each.
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